Make sure the spirit of giving doesn’t leave you in debt.
The holiday season is fast approaching, and if you’re already feeling stressed about it, you’re not alone. With the return of holiday shopping comes the pressure of ticking off your list, but that doesn’t have to mean diving deep into debt. By sticking to a few simple strategies, you can ensure you enjoy the season without overspending.
Make a Budget
It might seem obvious, but creating a budget is key to responsible holiday shopping. Try making a spreadsheet to track your anticipated income during the holiday months and listing all the people you need to shop for. Subtract your fixed expenses along with what you plan to spend on decorations, travel, food, and gatherings. This gives you a clear picture of your holiday spending power and helps keep your budget in check.
Stick to Your Budget
The effectiveness of your budget depends on how well you stick to it. Don’t try to match other people’s generosity if they don’t share the same financial obligations. Focus on shopping within your means – those closest to you will understand your budget, so there’s no need to stretch beyond your comfort zone to impress them.
Cut Down on Costs
If you want to stretch your budget without sacrificing your generosity, consider cutting back on non-essential spending. Consider reducing expenses like coffee, eating out or entertainment and redirecting those savings toward your holiday budget. If sticking to a budget proves difficult, limit yourself to cash purchases to avoid piling up credit card debt.
Think Outside the Box
While the holidays often equate to buying big gifts, you don’t have to overspend to show you care. If you’re on a tighter budget but still want to give meaningful gifts, get creative. If you’re known for your cooking skills, offer a voucher for a special meal. For those with young families, consider giving a gift of time, like babysitting for a few hours.
Experience-based gifts often cost less and are more personal, making them a thoughtful alternative to material goods.
The holiday season doesn’t have to be a financial burden. Planning ahead and sticking to a budget can help you enjoy the festivities without worrying about post-holiday debt. If you need guidance on budgeting or managing your finances during the season, check out our Five Star Bank home budget calculator today.
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